1997 (1) TMI 540

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..... this reference under s. 256(1) of the IT Act, 1961, the Tribunal has referred the following question at the instance of the assessee : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that interest pertaining to the borrowings taken by the assessee direct for making payment of income-tax and dividend was not allowable under s. 36(1)(iii) of th .....

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..... his Court in the above decision that interest paid on moneys borrowed for payment of taxes is not entitled to deduction under s. 36(1)(iii) of the Act. In view of the above, we answer the question referred to us as follows : The Tribunal was justified in holding that the interest pertaining to the borrowings taken by the assessee for payment of income-tax was not allowable as deduction under s. .....

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